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The deal with bring good fortune for both companies (Image via: TechCrunch)
Apple Agreed to Buy Intel’s Modem Chip Division
The announcement just came from Apple and Intel about the deal between them that expected to close at the fourth quarter of 2019. Apple already gave $1 billion to Intel in order to have the 2,200 Intel employees, intellectual property and other equipment from Intel. The deal will allow Intel to focus on developing modems for non-smartphone applications, such as PCs, industrial equipment, and self-driving cars. Intel is going to shift its focus on the more profitable 5G network opportunity where the company is growing and winning share, according to Intel CEO Bob Swan.On the other hand, the deal between both companies will bolster Apple’s goal to make its own modem chip. Apple can have opportunity to walk ahead of its two major competitors, Samsung Electronics Co Ltd and Huawei. Currently both competitors already supply its own modem chip. The deal added to Apple’s grand portfolio. The company will have 17,000 wireless technology patents, ranging from cellular communication standards to modems. Apple is ready to get back on fight after its stock was flat at the time of the announcement. Meanwhile, Intel’s stock rose to more than 5 percent in the recent trading.
The deal with Intel is the second largest after $3.2 billion Apple’s deal with Beats Electronics in 2014. Before the deal, Apple was predicted to use Qualcomm’s modem technology for 5G iPhone in 2020. However, Apple also have a target to use its own 5G modem technology on some of the products by 2021. Now Intel may make the plan moves faster, since the company wants to have a 5G modem by 2020. After all, Apple just had a long legal fight with Qualcomm Inc, as its previous supplier, about patent licensing practices.
Source: https://www.nbcnews.com/tech/tech-news/apple-buy-intel-s-wireless-chip-unit-1-billion-n1034751
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